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HMRC: Making Tax Digital for VAT
05 December 2018
HMRC has recently confirmed that businesses with ‘more complex requirements’ will not have to begin Making Tax Digital for VAT (MTDfV) until 1 October 2019, 6 months after the initial execution date of 1 April 2019.
Businesses that fall under the exemption include:
- Not for Profit organisations that are not set up as a company
- VAT divisions
- VAT groups
- Public Sector entities required to provide additional information on their VAT return, including government departments and NHS Trusts.
- Local Authorities
- Public Corporations
- Traders based overseas
- Those required to make payments on accounts
- Annual accounting scheme users.
HMRC went on to state:
- You can continue to use the existing portal if your business is below the £85,000 UK turnover threshold.
- There will be no universal ‘light touch period’. However, during the first year HMRC will be lenient with people who have tried hard to comply with the new rules.
- Penalties will be given to people who intentionally do not comply.
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